A Compound of Alchymie

Wonderland - Last of Dragon's Den

The last episode of the current series (implication is that there might be another) was aired last night (Tuesday 9 Feb).  Usual theme of fledgling entrepreneurs massively overvaluing their business idea. One pair valued their business at £1.5M even though they currently had no actual customers for their folding rubbish bins. The amount of equity that entrepreneurs are prepared to give up for the Dragon's cash is also laughable - literally because the Dragons often do laugh when they are told they will only get 10% (which for some reason seems to be the standard 'offer'). In the end if they get any of the Dragon's cash they usually end up giving much more. This may seem like  sheep to the slaughter but in practice most of the Dragon's  offer to play the role of 'business angel' not only investing cash but also providing tactical and strategic advice. A good idea is one thing - turning it into a successful business requires a lot more - and especially so in today's ultra competitive world market.

Two ideas got the Dragon's support  this week:

Snowbone - A device that turns your snowboard into a 'snow scooter'.
Wonderland - A surprising choice for the Dragon's - a new ultra lifestyle magazine aimed at men and women (along the lines of the ultra cool but still pretentious Wallpaper).

I'm still guessing that the Beeb will follow-up the successful (and possibly the unsuccessful) entrepreneurs at some point in the future. If so, I will be booking the front row seat in my lounge!

More Dragon's Den

Dragon's Den wasn't quite so interesting this week - primarily because the entrepreneurs had such poor business ideas. Some to keep an eye on:

StableTable  - a device to stop your table wobbling in a restaurant
Music Control - a web site that enables musicians to sell their work via downloads
Flower Quiver - packaging that enables you to carry flowers over your shoulder
Personal Air Vehicle - a plane that you keep on your driveway.

Only one entrepreneur got the cash she needed - missed the name - but she effectively ran a style consultancy for high powered women - you know, the ones that are too busy to go shopping (sounds like most 'men' to me). She, or one of her consultants, pitch up at the office, suck-up a lot and go away (hopefully) with an order for a £600 sharp business suit. She wanted £120,00 and was prepared to give away 20% equity. She got the cash but had to give up 40% equity - she also had to commit to cutting her proposed salary from £70k to £35k.

I hate this sort of 'premium' service business - the basic aim is to charge customers as much as possible to buy into an illusion - it's not unlike buying seats in First Class when flying to Paris - a complete waste of money unless you are suffering from 'status anxiety'. It won't work - customers are too well informed these days - give them quality not the illusion of quality.

If this programme represents the pinnacle of UK innovation - I'm going to get seriously depressed. Let's hope for better things next week.